If you have been near the markets the past few months, you've most likely once again seen the rise of cryptocurrencies such as Bitcoin, Ethereum, Solana, Helium and many more after the crypto space had a rough Q1 and Q2 this year. Bitcoin has almost reached the 70.000 USD mark and Ethereum is nearing 5000 dollars.
Can Bitcoin and Ethereum continue higher?
Before we look at the stocks though, here are Bitcoin and Ethereum trying to
break to new all-time highs. If both of these cryptocurrencies can hold above
their major levels, that would signal continued strength for the industry. On
the other hand, a break below those broken resistance zones would signal major
weakness not only for the industry but arguably for risk assets as a whole.
Bitcoin and the Dollar
Here's another very interesting chart, the negative correlation between
Bitcoin and the United States Dollar has recently decoupled. Both of these
assets are moving higher which based on previous correlation should not last
very long. The question is who's right? A weaker dollar would be the preferred
roadmap as this would signal continued strength from commodities too, but
that's for another article...
HIVE
Take a look at HIVE...Why would you not want to own this if it breaks above that 5.50 USD level? You can be anti-crypto as much as you want but you cannot deny that the stock looks interesting here. Hive is a cryptocurrency mining firm. The company provides crypto mining and validates transactions on block chain networks. The company is in the business of mining Bitcoin and Ethereum. And for all you ESG freaks out there, based on their reports they do this by using 100 percent green energy...
Hive looks very attractive for a buy if it breaks above that 5.50 USD level which would push the stock to a new all-time high.
BITFARMS
This stock has most likely been on the radar of quite a few crypto enthusiasts given the picture perfect consolidation that has taken place. BITFARMS is a Canadian cryptocurrency mining firm. It provides computing power to networks such as that of Bitcoin, making it one of the largest ones in North America. The company earns fees from securing and processing transactions. The mining operations are powered by hydroelectricity.
You arguably have to own this on a risk/reward perspective if it trades and closes above that significant 8.50 USD level which would push this stock to new all-time highs. If the crypto industry can continue the success it has been seeing, Bitfarms is likely a stock that will benefit from that success.
RIOT
The last stock here that can potentially offer us some great returns is Riot Blockchain. This company operates as a digital currency company. Riot focuses on buying up blockchain and cryptocurrency businesses. Riot has a number of mining operations throughout the United States with one being the single largest Bitcoin mining and hosting facility in North America.
Riot is arguably the least attractive one out of the stocks we've seen due to the fact that it has a bit of overhead resistance to tackle before it can reach new all-time highs. But, regardless of that the stock looks poised for a renewed uptrend after the stock's been moving sideways for a number of months. The stock was able to break an important level, around 40 USD, to the upside and has very recently also broken the intermediate descending trendline which was a signal that Riot had found some new bullish strength.
If Riot can stay above that 40 USD level, I think it is a smart idea to own it, at least until it potentially reaches the previous all-time high which is around 80 USD. Continued strength in the cryptocurrency space will likely push this stock higher.
What are your thoughts on these stocks? Or on individual cryptocurrencies? I would love to know your opinion, you can always contact me via the contact form or via socials!